Fed's Beth Hammack says she expects rates will 'remain on hold for a good while'

Summary

Cleveland Fed President Beth Hammack discusses the economic outlook, stating that interest rates are likely to remain on hold for an extended period due to balanced risks between inflation and growth. She highlights persistent inflation above the Fed's 2% target and its impact on consumers, while noting that energy price surges and labor market dynamics add uncertainty. Hammack emphasizes a patient, data-dependent approach to monetary policy.

• Hammack expects Fed rates to stay on hold for a good while.
• She sees two-sided risks to policy from inflation and growth.
• Inflation has been above target for five years, increasing costs for consumers.
• Energy price surges add uncertainty to inflation and growth outlook.
• Labor market is in balance and not currently inflationary.
• She advocates for patient policy approach amid data dependency.